Reducing Student Loan Cohort Default Rates

Strategies for Reducing Default Rates and Considerations for Federal Loan Program Termination

Topics: Community College, Financial Aid, Enrollment Management

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Summary

Cohort default rates are tied to an institution’s ability to administer federal student loans and grant programs. This report explores strategies to reduce student cohort default rates, as well as potential consequences of increasing rates.

Research Questions

  • What strategies do financial aid administrators apply to reduce student loan cohort default rates?
  • What factors did administrators consider in deciding whether or not to terminate federal loan programs (e.g., borrower demographics, cohort default rate, other federally backed programs)?
  • What advice do administrators offer those considering terminating their federal loan program?